{"id":1920097,"date":"2023-04-27T10:43:34","date_gmt":"2023-04-27T14:43:34","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gdp-grows-1-1-in-first-quarter-less-than-expected\/"},"modified":"2023-04-27T10:48:56","modified_gmt":"2023-04-27T14:48:56","slug":"gdp-grows-1-1-in-first-quarter-less-than-expected","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gdp-grows-1-1-in-first-quarter-less-than-expected\/","title":{"rendered":"GDP Grows 1.1% in First Quarter, Less Than Expected"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgdp-grows-1-1-in-first-quarter-less-than-expected%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1920097&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"group\">\n<h2>U.S. Economic Growth Slows in Q1 2023<\/h2>\n<p>The U.S. economy hit a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-nominee-has-up-to-55-million-in-trust-used-to-dodge-estate-tax\/\" title=\"DOJ Nominee Has Up to  Million in Trust Used to Dodge Estate Tax\">speed bump<\/a> in the first quarter of 2023, with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinas-central-bank-announces-surprise-rate-cut-to-boost-growth\/\" title=\"China's Central Bank Announces Surprise Rate Cut to Boost Growth\">growth slowing<\/a> to 1.<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/americans-dip-into-savings-as-inflation-soars\/\" title=\"Americans Dip Into Savings As Inflation Soars\">1% annualized pace<\/a>, below the expected 2%. The Commerce Department reported that slumping inventories and a decline in private investment were the main culprits. Inflation was also higher than expected, with the PCE price index rising 4.2% against the 3.7% estimate.<\/p>\n<div class=\"ExclusiveContentBucket-exclusiveContentBucket\">\n<h3 class=\"ExclusiveContentBucket-exclusiveContentHeading\">Related Investing News<\/h3>\n<div class=\"ExclusiveContentBucket-contentContainer\">\n<div class=\"BucketItem-bucketItem\" id=\"Regular Article-ExclusiveContentBucket-1-0\">\n<div class=\"BucketItem-bucketImageContainer\">\n<div class=\"BucketItem-proPillContainer\">\n            <a href=\"http:\/\/bonginoreport.com\/pro\/\" class=\"ProPill-proPillLink\" data-type=\"pro-button\"><\/a>\n          <\/div>\n<div class=\"BucketItem-investingClubPillContainer\"><\/div>\n<\/p><\/div>\n<div class=\"BucketItem-textContainer\">\n<div class=\"BucketItem-title\">\n            <a href=\"https:\/\/www.cnbc.com\/2023\/04\/26\/q1-gdp-economic-growth-likely-was-solid-to-start-the-year.html\">Economic growth likely was solid to start the year, but that could end the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/its-happening-trump-up-7-points-in-final-selzer-iowa-poll-latest-states-poll-has-trump-up-322-to-216-for-biden-in-national-electoral-college\/\" title=\"IT'S HAPPENING: Trump Up 7 Points in Final Selzer Iowa Poll -- Latest States Poll Has Trump Up 322 to 216 for Biden in National Electoral College\">good news<\/a> for a while<\/a>\n          <\/div>\n<div class=\"BucketItem-bylineContainer\">\n<div>\n<div class=\"BucketItemByline-author\">\n                <a href=\"https:\/\/www.cnbc.com\/jeff-cox\/\">Jeff Cox<\/a>\n              <\/div>\n<\/p><\/div>\n<div class=\"BucketItem-publishTime\">19 hours ago<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>The slowdown in growth came as a surprise to many, as the U.S. economy had been expected to decelerate even further ahead. The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/its-official-trump-crushes-record-for-largest-gdp-increase-in-us-history-3rd-quarter-gdp-up-33-1\/\" title=\"IT'S OFFICIAL: Trump Crushes Record for Largest GDP Increase in US History -- 3rd Quarter GDP Up 33.1%\">growth rate<\/a> followed a fourth quarter in which GDP climbed 2.6%, part of a year that saw a 2.1% increase.<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\">\n    <iframe title=\"U.S. real gross domestic product\" aria-label=\"Column Chart\" id=\"datawrapper-chart-0iHyE\" src=\"https:\/\/datawrapper.dwcdn.net\/0iHyE\/1\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0px; border: none; min-width: 100% !important; height: 424px;\" height=\"450\" data-external=\"1\"><\/iframe><br \/>\n    <script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[\"datawrapper-height\"][t]+\"px\";e[r].style.height=i}}}))}(); <\/script>\n  <\/div>\n<\/div>\n<div class=\"group\">\n<p>The report also showed that the personal consumption expenditures price index, an inflation measure that the Federal Reserve follows closely, increased 4.2%, ahead of the 3.7% estimate. Stripping out food and energy, core PCE rose 4.9%, compared to the previous increase of 4.4%. Despite the disappointing GDP numbers, stocks were solidly higher following the report while Treasury yields spiked.<\/p>\n<p>\u201cPeople were still spending even despite higher prices, even despite higher inflation and a big drag that we had from inventories,\u201d said Citigroup economist Veronica Clark. \u201cOverall, I think it\u2019s a relatively inflationary report, even though the headline GDP number is a bit softer. All of those signs that demand is still strong and prices are still rising were very much present today.\u201d<\/p>\n<p>The slowdown in growth came due to a decline in private inventory investment and a deceleration in nonresidential fixed investment, the report said. The inventory slowdown took 2.26 percentage points off the headline number.<\/p>\n<p>Consumer spending as measured by personal consumption expenditures increased 3.7% and exports were up 4.8%. Gross private domestic investment tumbled 12.5%.<\/p>\n<p>\u201cThe U.S. economy is likely at an inflection point as consumer spending has softened in recent months,\u201d said Jeffrey Roach, chief economist at LPL Financial. \u201cThe backward nature of the GDP report is possibly misleading for markets as we know consumers were still spending in January but since March, have pulled back as consumers are getting more pessimistic about the future.\u201d<\/p>\n<p>In other economic news Thursday, jobless claims totaled 230,000 for the week ended April 22, a decline of 16,000 and below the estimate for 249,000.<\/p>\n<p>The GDP report comes as the Federal Reserve is seeking to slow an economy burdened by inflation that had been running at its highest level in more than 40 years. In a policy tightening regime that began in March 2022, the central bank has raised its benchmark interest rate by 4.75 percentage points, taking it to the highest level in nearly 16 years. Though inflation has pulled back some from its peak around 9% in June 2022, it remains well above the Fed\u2019s 2% goal. Policymakers all say inflation is still too high and will require elevated interest rates.<\/p>\n<p>At the same time, growth has taken a hit from troubles in the banking sector that are likely to infect the economy ahead. Those two issues \u2013 the Fed\u2019s rate hiking cycle and an expected credit crunch ahead \u2013 are expected to tilt the economy into recession later this year. Consumers, though, have remained resilient and are expected to use excess savings and purchasing power to make the economic contraction short and shallow. A strong jobs market, with an unemployment rate at 3.5%, also is expected to underpin growth.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Gross domestic product rose at a 1.1% annualized pace in the first quarter, below the 2% estimate.Slumping inventories and a general decline in private investment held back early year gains.Inflation was higher than expected in the quarter, with the PCE price index rising 4.2% against the 3.7% estimate.Growth in the U.S. slowed considerably during the<\/p>\n","protected":false},"author":1,"featured_media":1920098,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[9007,4183,19583,5273,7509],"class_list":["post-1920097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-1-1","tag-expected","tag-gdp","tag-grows","tag-quarter"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1920097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1920097"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1920097\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1920098"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1920097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1920097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1920097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}